If the Consumer Price Index in 1980 Was 44

question 153

Multiple Choice

If the consumer price index in 1980 was 44.0 (2002 is the base period) and it was 49.5 in 1981,what is the best estimate of the rate of inflation from 1980 to 1981?

• A) 8.5%.
• B) 9.4%.
• C) 11.1%.
• D) 12.5%.
• E) 14.4%.

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Definitions:

Long Run

A period in economic analysis during which all factors of production and costs are variable, allowing for full industry adjustment.

ATC

Average Total Cost, which is the total cost of production divided by the number of goods produced, representing the cost per unit of output.

Break-Even Point

The point where total costs equal total revenue, meaning no profit or loss is incurred.

MC

Stands for Marginal Cost, which is the cost of producing one additional unit of a good or service.